RZD signs $US 2bn five-year rail deal with Evraz

RUSSIAN Railways (RZD) signed a new five-year agreement on February 19 with Evraz for the supply of 3.2 million tonnes rail products worth Roubles 111.7bn ($US 2bn) using a formula-based pricing system.

Under the deal, Evraz will continue to supply rails of all types, including for high-speed mixed traffic, low-temperature-resistant rails, rails with higher wear resistance, and switch point rails. The agreement provides for a gradual increase in the supply of 100m-long rails up to 360,000 tonnes by 2020.

“The contract specifies the volume of deliveries and the rail categories’ mix for each year, which allows both parties to plan their work more precisely,” says Mr Ilya Shirokobrod, Evraz vice-president for sales and logistics. But there is also an option to redistribute the volume or rail types.